THE SCOTSMAN REPORTS
Carruthers coy over Edinburgh investment
DAVID FERGUSON

EDINBURGH are heading into a new era, with new financial security and a plan to turn Murrayfield into the most popular pro team venue in Scotland.

That is the belief of the team's new chairman, Alex Carruthers, who earlier this month took control of the professional outfit along with his brother Bob in a five-year deal with the SRU. But, despite an engaging media session yesterday, serious questions remain unanswered just four weeks from the new season.

Carruthers, the former Kirkcaldy and Caley Reds player and Melrose coach, followed up his initial takeover announcement on 10 July with interviews at the national stadium yesterday, when he sought to fill in some detail on his plans for Edinburgh Rugby Limited. He spoke of his desire to attract crowds of 8,000 to Murrayfield to watch Edinburgh "over the next five years", of how big-name players will be targeted and of how investment of millions of pounds, he hopes, will be recouped in that time.

He also insisted that he and his brother "were in it for the long-term; longer than five years", but that they were serious businessmen looking to make a return. That balance of rugby and business backgrounds swayed the Scottish Rugby Board, and the fact the union has finally opened its doors to allow private investment has to be commended because it has been clear for some time that Scottish rugby cannot, on its own, fund the professional game in this country.

But, looking at the big summer story with some objectivity, it remains unclear what level of investment has been promised and what potential there exists for a realistic improvement to the struggling fortunes of Edinburgh. Even the Graham Burgess/Roy Carver/Kenny Logan consortium - which has now withdrawn its bid to take over Glasgow and move it to Stirling - required a leap of ambition, but, whereas that plan was said to have a top-quality rugby chief executive and five-strong marketing team in place, a new venue lined up and a guaranteed £3.5 million-plus investment over the next three years, there is much less known about the Carruthers' plan.

What is clear is that the union does retain a healthy involvement in the new set-up, despite the insistence by Carruthers yesterday that "we are our own people; not yes men [to the SRU]". The search for a head coach to replace Todd Blackadder has now been passed over to Carruthers, the union having lost leading candidates to English clubs and deemed others unworthy, but Frank Hadden may still be involved in the appointment.

One SRU employee is on the current three-man board, alongside Carruthers and his long-time friend, Graham Garvie, the Borders councillor. The SRU still runs Edinburgh's media and PR. Although the union has parted company with marketing and commercial director John Donnelly, there is no new marketing team to target one of the most problematic area of the pro teams to date.

When pushed on the finance now available to Edinburgh, Carruthers provided little detail. What is the split of Heineken Cup and Celtic League revenues between the SRU and the new Edinburgh owners? "Same as the SRU did with the teams before," he replied. That equates to a pay-out of around £750,000, so, bearing in mind the union has been losing over £2 million a year through the Gunners, how much money are the investors bringing to the table? "I'm not going to quote specific sums, but millions of pounds will be invested over the next five years." Where is the money coming from? "My brother Bob and some Scottish exiles who wish to remain anonymous at this stage."

It is to be expected that Carruthers will not discuss the finances or the make-up of the 'partnership' with the union, but it leaves us with a fuzzy picture of what this consortium means for Edinburgh and Scottish rugby as a whole. One other intriguing aspect of the deal is the fact Bob Carruthers has been handed exclusive rights to promote Murrayfield for concerts and events. That could have huge potential, but neither Carruthers nor the SRU would discuss that deal and which party takes most of the income.

Carruthers admitted that that was a major "negotiating" part of the deal, but denied that it was the sole motivating factor for the brothers or that it would provide them with the finance to run the pro team.

He insisted: "Everyone is always going to be suspicious, but we are rugby guys and we are here to make Edinburgh rugby successful, not haemorrhage cash. Our commitment is long-term so significant amounts have been committed and will continue to be committed to the Edinburgh rugby cause.

"It will take us four or five years I believe, maybe three if we learn quickly from others' mistakes, but we believe we can turn Edinburgh into a professional side competing at the highest levels which also gives investors a return for their money. That's why we're in it. We're not foolish enough to believe that will happen overnight, and we're not benevolent Fifers - we are businessmen and we're in this for a return on our investment."

Gordon McKie, the SRU chief executive, refused to be drawn on why the Burgess/Carver/Logan deal was not good enough to be accepted and the Carruthers' was. He said only that it was simply a matter of the Carruthers coming up with "the right deal", and Burgess, Carver and Logan not.

This article was posted on 28-Jul-2006, 07:11 by Hugh Barrow.